Choosing a Broker – Eight factors to consider when choosing a Forex Broker

Beginner

In this video and accompanying commentary, we are looking at the EIGHT factors that any prospective trader should consider when choosing a Forex Broker or for trading any financial markets.

The EIGHT factors we would suggest considering when choosing a FX Broker are:

  1. Trust
  2. Investment Offerings
  3. Commissions and Fees
  4. Trading Platform
  5. Research
  6. Education
  7. Customer Service
  8. Mobile Trading

 

  1. Trust
  • Know your broker.
  • Are they regulated, and if so, is it by a respected authority?
  • Do they have a long and stable history?
  • Is the company Publicly Listed? If so, it is more likely to be trustworthy.
  • Check out online forex reviews, including from ourselves at FX Explained.

 

  1. Investment Offerings
  • What is available to trade?
  • Does the broker offer multiple asset classes, Is this important to you?
  • Are they a specialist broker, concentrating on a certain asset class? This may attract you, or not.

 

  1. Commissions and Fees
  • What is the fee structure per trade?
    • The spread? How big is the spread?
    • A fixed commission per trade?
    • A combination of these?
  • Are there other fees?

 

  1. Trading Platform
  • How good is the trading platform? Is this even important to you?
  • If you are trading from technical analysis, how solid is the technical analysis offering?
  • How user friendly is the trading platform?

 

  1. Research
  • Is there a strong and in-depth Research offering? Is this significant for you?
  • If you are trading from a macroeconomic or fundamental basis, how solid is their fundamental/ macroeconomic research?
  • If you are trading at a company level, how strong is their microeconomic and individual company research?

 

  1. Education
  • Are you a beginner or intermediate level trader, do you want to learn more?
  • If so, is the educational offering strong and in-depth?
  • Are webinars and videos offered?
  • Can you ask questions and interact?

 

  1. Customer Service
  • How easily can you contact someone at the broker if you need to?
  • Are they available 24/7, or just during working hours, only Monday-Friday?
  • Is there telephone support, email support, online chat?
  • What is the response time like?
  • Is this even important to you?

 

  1. Mobile Trading
  • Is mobile trading offered?
  • Are there dedicated apps for iPhones and iPads, Android phones and tablets?
  • Are the mobile trading apps user friendly? E.g. do the mobile apps synchronise with the desktop accounts?

Choosing a broker to trade with is an important step, please do try out both demo and live accounts to get a taste of the offering from different brokers.

And you can always check out our reviews page here https://www.fxexplained.co.uk/best-forex-brokers-in-uk/

Steve Miley

Editor in chief

Steve Miley has 29 years of financial market experience and as a seasoned expert now has many responsibilities. He is the founder, Director and Primary Analyst at The Market Chartist, the Editor-in...continued

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